A joint spatial econometric model for regional FDI and output growth

© 2023 The Authors. Papers in Regional Science published by John Wiley & Sons Ltd on behalf of Regional Science Association International..

This paper studies the joint dynamics of foreign direct investments (FDI) and output growth in European regions by using spatially augmented systems of equations modeling framework that incorporates third-region and spillover effects. The joint framework is used to study the dynamic impacts of regional human capital endowments, which demonstrates the importance of explicitly accounting for an endogenous relationship. The relationship is highlighted in a stylized projection exercise, where the long-run impacts are pronounced in Eastern Europe and capital cities. Overall, ignoring the relationship of regional economic performance and FDI distorts the implied transmission mechanism, which is of utmost importance for policy makers.

Medienart:

E-Artikel

Erscheinungsjahr:

2023

Erschienen:

2023

Enthalten in:

Zur Gesamtaufnahme - volume:102

Enthalten in:

Papers in regional science : the journal of the Regional Science Association International - 102(2023), 1 vom: 27. Feb., Seite 87-106

Sprache:

Englisch

Beteiligte Personen:

Krisztin, Tamás [VerfasserIn]
Piribauer, Philipp [VerfasserIn]

Links:

Volltext

Themen:

European regions
FDI–output relationship
Journal Article
Spatial econometric estimation
Spatial spillovers

Anmerkungen:

Date Revised 27.03.2024

published: Print-Electronic

Citation Status PubMed-not-MEDLINE

doi:

10.1111/pirs.12714

funding:

Förderinstitution / Projekttitel:

PPN (Katalog-ID):

NLM37018890X